7-Eleven Contributes 76 Percent of International Modern Retail Sales

In its public expose, PT Modern Internasional Tbk (MI) management stated that it had implemented a restructuring strategy and sought new investors for the development of 7-Eleven. One approach involved PT Charoen Pokphand Restu Indonesia, but this was cancelled due to a failure to reach an agreement. Consequently, starting June 30, 2017, PT Modern Sevel Indonesia (MSI) was forced to close all 7-Eleven outlets. PT MI holds 99.9% of PT MSI's shares.

In 2016, 7-Eleven contributed 75.8 percent to Modern Internasional's total sales of Rp 891.4 billion. Of this amount, Rp 675.28 billion came from 7-Eleven sales, with the remainder from the trading business unit. The cessation of 7-Eleven's operations will significantly impact PT Modern Internasional's revenue. 7-Eleven sales in 2016 fell by 23.86 percent; sales from the trading business unit (medical imaging) dropped by 48 percent; and sales from the trading business unit (Ricoh IT Solution and others) also decreased by 9.8 percent.

Modern Internasional's share price on Friday, July 14th, stood at Rp 50 per share. This represents a 54.5 percent decrease from its year-end 2016 position of Rp 110 per share. The share price, with the code MDRN, reached its highest level in 2017 on January 3rd, at Rp 114 per share.